Russel Metals Inc (TSE:RUS)
TSX:RUS
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Russel Metals
(TSX:RUS)
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Rating:80Outperform
Price Target:
C$66.00
▲(33.50% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by solid financial quality (low leverage, improving returns, positive and growing free cash flow) and a favorable valuation (low P/E with a ~3% dividend). Offsetting factors include profitability still well below prior-cycle peaks and near-term cash/working-capital and margin-dilution risks tied to acquisition integration, while technically the trend is strong but currently overextended (RSI/Stoch elevated).
Positive Factors
Conservative balance sheet and ample liquidity
Low leverage and sizeable liquidity provide durable financial flexibility: supports continued M&A, higher CapEx cycles, and sustained shareholder returns without stressing solvency. An investment-grade profile and modest net debt cushion the business through industry cycles and funding needs over the next 2–6 months and beyond.
Negative Factors
Margins remain well below prior-cycle peaks
Persistently lower net margins indicate the business is operating below prior-cycle profitability, reducing earnings resilience to cyclical downturns. Structural normalization from peak pricing and mix shifts means margins may take multiple quarters or a full cycle to recover, constraining medium-term return expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and ample liquidity
Low leverage and sizeable liquidity provide durable financial flexibility: supports continued M&A, higher CapEx cycles, and sustained shareholder returns without stressing solvency. An investment-grade profile and modest net debt cushion the business through industry cycles and funding needs over the next 2–6 months and beyond.
Read all positive factors
Russel Metals (RUS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.20B
Dividend Yield3.88%
Average Volume (3M)161.96K
Price to Earnings (P/E)9.2
Beta (1Y)0.85
Revenue Growth11.72%
EPS Growth33.83%
CountryCA
Employees3,970
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)3.55
Shares Outstanding55,061,756
10 Day Avg. Volume174,071
30 Day Avg. Volume161,958
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)1.55
Price to Sales (P/S)0.53
P/FCF Ratio19.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$59.29Price Target Upside19.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.73
Revenue Forecast (FY)C$5.59B
Russel Metals Business Overview & Revenue Model
Company Description
Russel Metals Inc. operates as a metal distribution company in North America. The company operates through three segments: Metals Service Centers, Energy Products, and Steel Distributors. The Metal Service Centers segment sells plates, flat rolled...
How the Company Makes Money
Russel Metals makes money primarily by purchasing metal products (predominantly steel) from mills and other producers and reselling them to end users and other industrial customers at a margin. Its revenue model is largely volume-and-spread driven...
Russel Metals Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive picture: strong full-year growth in revenues, margins, EBITDA and ROIC; disciplined capital allocation with active M&A (notably Kloeckner) and significant shareholder returns; and a healthy balance sheet and liquidity position supported by investment-grade ratings. Near-term items to monitor include seasonal Q1 working capital absorption, inventory increase from the Kloeckner acquisition, one-off transition costs and the fact that Kloeckner's lower margin profile will temporarily dilute blended margins while integration and value-add investments are executed over the next 1–2 years. On balance, the positives (higher cycle EBITDA, diversified U.S. footprint, strong returns and financial flexibility) outweigh the manageable near-term challenges.Positive Updates
Full-Year Revenue and Margin Growth
2025 revenues grew ~9% year-over-year; full-year gross margin improved by ~90 basis points and full-year EBITDA dollars increased ~13% versus 2024 (EBITDA margin 7.3% for 2025).
Negative Updates
Seasonal Q4 Softness and Sequential Decline
Q4 EBITDA was $69M, down from Q3 due to typical seasonal volume decline; revenues were down ~6% from Q3 (but up 5% versus Q4 2024).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and Margin Growth
2025 revenues grew ~9% year-over-year; full-year gross margin improved by ~90 basis points and full-year EBITDA dollars increased ~13% versus 2024 (EBITDA margin 7.3% for 2025).
Read all positive updates
Company Guidance
Management’s guidance was pragmatic and metric-rich: they expect 2026 capital expenditure to rise toward ~US$/CAD‑$100M (from $74M in 2025) with a multiyear CapEx pipeline of about $200M; same‑store service‑center margins should tick up ~25–50 bps in Q1 2026 (though blended margins may be flat as the recently closed Kloeckner deal—USD95M/CAD130M purchase price for businesses that generated ~USD550M revenue and ~USD30M adjusted EBITDA in 2025—is lower‑margin but immediately accretive in dollars); capital deployed reached ~$1.8B (vs $1.6B at end‑2024), with net debt around $184M and net‑debt-to‑invested‑capital ~10% post‑close and liquidity over $500–653M; returns remain a priority (ROIC 15% in 2025 and 3‑yr average 18%, target >15% through the cycle) alongside a balanced capital return program (2025 buybacks $86M + dividends $96M = $182M; NCIB cumulative ~$326M since Aug‑2022, 14% fewer shares outstanding); they also flagged normal Q1 working‑capital seasonality, the expected release of >$40M of capital from the Delta real‑estate sale (reducing Western Canada capital by >$100M), and continued focus on integration and selective M&A.Russel Metals Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.89B | 4.64B | 4.26B | 4.51B | 5.07B | 4.21B |
| Gross Profit | 1.06B | 1.01B | 889.90M | 956.50M | 1.13B | 1.21B |
| EBITDA | 378.80M | 340.60M | 315.50M | 428.20M | 580.40M | 657.90M |
| Net Income | 197.60M | 168.80M | 161.00M | 266.70M | 371.90M | 432.20M |
Balance Sheet | ||||||
| Total Assets | 2.84B | 2.68B | 2.35B | 2.57B | 2.51B | 2.31B |
| Cash, Cash Equivalents and Short-Term Investments | 128.10M | 114.60M | 45.60M | 629.20M | 363.00M | 133.10M |
| Total Debt | 486.20M | 483.70M | 196.80M | 422.50M | 422.90M | 404.30M |
| Total Liabilities | 1.20B | 1.10B | 688.30M | 930.20M | 947.60M | 1.07B |
| Stockholders Equity | 1.65B | 1.59B | 1.66B | 1.64B | 1.56B | 1.25B |
Cash Flow | ||||||
| Free Cash Flow | 175.40M | 125.10M | 253.70M | 389.00M | 318.40M | 275.70M |
| Operating Cash Flow | 239.00M | 199.50M | 343.90M | 461.70M | 359.90M | 304.50M |
| Investing Cash Flow | -151.30M | -200.50M | -417.70M | -5.30M | -6.50M | -107.20M |
| Financing Cash Flow | -189.90M | 78.20M | -537.90M | -184.90M | -139.10M | -93.50M |
Russel Metals Technical Analysis
Positive
49.44
Price Trends
48.04
Positive
46.18
Positive
43.59
Positive
Market Momentum
0.61
Negative
56.62
Neutral
43.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RUS, the sentiment is Positive. The current price of 49.44 is above the 20-day moving average (MA) of 48.57, above the 50-day MA of 48.04, and above the 200-day MA of 43.59, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 43.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RUS.
Russel Metals Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$3.20B | 9.20 | 12.22% | 3.88% | 11.72% | 33.83% | |
74 Outperform | C$18.25B | 42.80 | 16.06% | 1.25% | 4.85% | 4.18% | |
68 Neutral | C$13.35B | 23.26 | 24.05% | 1.58% | -6.98% | 11.17% | |
65 Neutral | C$2.07B | 19.45 | 8.72% | 5.21% | 7.92% | -14.19% | |
65 Neutral | C$623.12M | 9.90 | 11.63% | 5.09% | -3.59% | 50.73% | |
64 Neutral | C$3.47B | -37.51 | 3.71% | 2.38% | 26.30% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:RUS
Russel Metals
58.19
17.46
42.85%
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Russel Metals Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Russel Metals Lifts 2025 Earnings and Closes Kloeckner Deal to Boost U.S. Growth
Positive
Feb 12, 2026
Russel Metals reported 2025 revenues of $4.6 billion and EBITDA of $337 million, with fourth-quarter revenues of $1.1 billion and EBITDA of $69 million, reflecting year-over-year increases driven largely by acquisitions completed in late 2024. Gro...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.